COEUR D ALENE MINES CORP
8-K, 1996-07-12
SILVER ORES
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                      SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C.


                                   FORM 8-K

                                CURRENT REPORT

                    Pursuant to Section 13 or 15 (d) of the
                      Securities and Exchange Act of 1934



       Date of Report (Date of earliest event reported): July 12, 1996


                       COEUR D'ALENE MINES CORPORATION
  ---------------------------------------------------------------------------
            (Exact name of Registrant as specified in its charter)


         Idaho                      1-8641             82-0109423
 ---------------------------      ------------       ---------------
(State or other jurisdiction      (Commission        (IRS Employer
      of incorporation)           File Number)       Identification
                                                       Number)

           400 Coeur d'Alene Mines Bldg.
           505 Front Avenue
           Coeur d'Alene, Idaho                         83814
      ----------------------------------------      ----------
       (Address of principal executive offices)      (zip code)


      Registrant's telephone number, including area code: (208) 667-3511
                                                          --------------


                                Not Applicable
  ---------------------------------------------------------------------------
         (Former name or former address, if changed since last report)



<PAGE>



Item 4.  Other Events

     Because of increased  expenditures  related to  remediation of the ground
movement which impacts the tailings  impoundment at its Golden Cross mine, the
Registrant   announced  that  its  second  quarter   results  will  include  a
non-recurring  asset write-down of approximately  $53 million.  The write-down
includes  accrual of  remediation  costs.  The  Registrant  believes that this
matter  results from the failure of the previous owner of the property to make
required  disclosures to Registrant when Registrant purchased the Golden Cross
Mine from it in 1993 and Registrant is,  therefore,  asserting  claims against
the previous owner.

     The ground  movement at the New  Zealand  mine is  centralized  60 meters
beneath a slope upon which the mine's tailings facility is located.  Since the
first  quarter  of  this  year,  Registrant  has  been  constructing  a  1,500
meter-long drainage tunnel to relieve underground  watertable pressure thought
to be causing the movement,  as well as performing  other dewatering and slope
stabilization work.  Initially it was believed that remediation costs would be
about $4  million.  Recently,  revised  estimates  of the  costs of  necessary
remedial measures, however, have raised that expected expenditure to clearly a
substantially  higher amount.  As a  consequence,  the Registrant now believes
that it should write-down the entire carrying value of its 80 percent interest
in that property.

     Registrant  purchased  its  interest  in  Golden  Cross  in  April  1993.
Subsequent  to  learning of the ground  movement,  and after  determining  the
needed remedial measures, Registrant advised the seller that it believes it is
responsible  for the  consequences  of  remedying  the problem  because of its
failure to disclose to Registrant the true nature of the ground movement risks
before Registrant's  acquisition of an 80 percent interest in the Golden Cross
property.

     An  engineering  evaluation  is underway to determine the full extent and
cost of the remedial measures required to stabilize the land movement on site.
This  may  have  an  adverse  impact  on the  mine  operations.  It  had  been
anticipated that Golden Cross would yield to Registrant  approximately  77,000
ounces of gold and 251,000  ounces of silver in 1996.  The mine  continues  to
operate at the highest environmental standards.

     The write-down of $53 million  reduces the  Registrant's  total assets by
only 9 percent. In addition,  after the write-down,  stockholders' equity will
be approximately $350 million and the Company's long-term debt-to-equity ratio
 .59 to 1.


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<PAGE>



                                  SIGNATURES


     Pursuant to the requirements of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report to be  signed on its  behalf by the
undersigned thereunto duly authorized.



Dated: July 11, 1996                     By: /s/JAMES A. SABALA
                                             -------------------------
                                             James A. Sabala
                                             Senior Vice President and
                                              Chief Financial Officer


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